4 Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: 1.16 points Sales Frozen Foods $ 148,000 Cost of goods sold 128,000 Baked Goods $ 142,000 104,000 Fresh Produce $ 211,000 153,000 eBook SFS estimates that store support expenses, in total, are approximately 14% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Print Activity (cost driver) Order processing (number of purchase orders) Receiving (number of deliveries) References Shelf-stocking (number of hours per delivery) Customer support (total units sold) Frozen Baked Fresh Foods Goods Produce 10 49. 93 11 73 146 5 0.5 6 22,000 34,000 68,000 The controller estimates activity-cost rates for each activity as follows: Order processing $ 83 per purchase order Receiving 106 per delivery Shelf-stocking 12.00 per hour Customer support 0.21 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Operating income (loss) Oncention marin anl Frozen Food Baked Goods Fresh Produce